This article was first published on 8 February 2022 and updated on 1 March 2022 to include updates on eligibility criteria, grounds for ineligibility, application period and application process. For questions, feel free to get in touch with us.

 

Nobody wanted it, but the COVID-19 virus has once again limited public movement across New South Wales.

Over the last few weeks, a record number of employees have had to take a leave of absence because they were either infected with the omicron variant or had close contact with a Covid case. Due to the labor shortage, businesses relying on physical labor operations — such as salons, cafés, hotels, retail stores — faced the risks of going under.

Highly impacted businesses require targeted support to cope with the current situation. As a response, the state government has started the 2022 Small Business Support Program “to help businesses survive the immediate impact of the omicron wave.”

The application is still open and will officially close on 29 April 2022.

If the recent omicron surge crippled your business, take note of the following pieces of information to see if you are eligible for the 2022 Small Business Support Program.

 

Are you eligible?

To be eligible for this new support program, your business must meet the following criteria:

  • Have an active Australian Business Number (ABN)
  • An annual turnover between $75,000 and $50 million.
  • Experienced at least 40% decline in turnover over January and the first fortnight of February 2022 (1 to 14 February), comparative to the same period in 2021 or 2020.
  • For employing businesses: Maintain your employee headcount from 30 January 2022 to 28 February 2022. 
  • For non-employing businesses: Provide evidence that the business is your primary income source. This means 50% or more of your total income must come from this business.

Additional note for non-employing businesses: You may still be eligible even if anyone associated with, or is deriving income from the business, has received the Commonwealth Pandemic Leave Disaster Payment for the same period they apply for the 2022 Small Business Support Program.

If you do not meet any of the above criteria, you may still be able to apply for the 2022 Small Business Support Program if you meet these alternative circumstances. 

 

Who is not eligible for the 2022 Business Support Program?

You may be ineligible for this support program if:

  • 50% of your total income are passive (example: rents, interest or dividends)
  • You’re in the banking business. Government agencies, local governments and universities are also ineligible. Check out the full list of ineligible organisations here.
  • You’re a registered charity that receives COVID-19 support from the NSW Department of Communities and Justice Social Sector Support Fund (SSSF).

 

When and where to apply

The application for the 2022 Small Business Support Program is now open via the Service NSW website and will close on 29 April 2022.

If you meet the eligibility criteria, you can send your application via MyBusinessNSW webpage. You can follow the step-by-step instructions on the page, including the supporting documents and bank details you must submit. See to it that you meet all the requirements being asked before submitting your application to increase your chances of receiving the payment. For the comprehensive list of supporting documents to support your eligibility, click here.

 

What’s in it for you?

Here’s what you can get if you are eligible for this program.

  • Employing businesses (including not-for-profit organisations)

If your business has employees, you will receive 20% of the weekly payroll as a lump sum for February.

The minimum payment you can get is $750 per week while the maximum payment is $5,000 per week.

  • Non-employing businesses (sole traders)

If you don’t have employees, you will receive $500 per week, paid as a lump sum of $2,000.

 

Let Us Help

Do you need accounting support in applying for the Small Business Support Program or other government grants? Let ABJ Solutions help in keeping your books accurate and up-to-date.

We are offering a complimentary one-hour meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through these challenging times.